When using the indirect approach, which of the following would lead to an increase in the cash flows from operations?

Question

Quizplus · Accepted Answer

In the indirect approach, cash flows from operations are calculated by adjusting net income for changes in current assets and liabilities. An increase in accounts receivable means that there is more money owed to the company, which decreases cash flows from operations. Conversely, a decrease in accounts receivable means that the company is collecting more money from its customers, which increases cash flows from operations. So, the correct answer is B.

When Using the Indirect Approach, Which of the Following Would